I like this analysis. Sad fact is that $200 or even $100 difference in cost is a big deal to many on modest incomes. We'll see the same sort of split if and when Apple comes out with the rumored lower-cost iPhone.

No doubt, a portion of iPad Mini sales are made by those who might otherwise have bought a full-sized iPad. But it's not all bad news. This article makes no mention of those customers who would never have bought an iPad had it not been for the availability of the Mini.

The Mini is no loss leader. Apple still makes a reasonable profit on each one sold, as well as bringing additional people into the Apple fold. And we know that once people get a taste of Apple, they are likely to stay loyal.

This really doesn't come as much of a surprise. Last October, BYTE ran an article that cited analysts predicting iPad Mini would cannibalize as many as 1 million current-gen iPad sales during the fourth quarter.

Back then, BYTE's Former Editor Larry Seltzer said "Apple neither makes nor loses money when someone buys a Kindle Fire. But if the [cannibalization] is true, and they're losing iPad 'Biggie' sales then it's a matter of which is more profitable to Apple."

Apple could have stayed the course, put all their focus on making a class-act iPad and truly dominated the market. Instead Apple got greedy and shot themselves in the foot.

But I guess in the end a sale is a sale to Apple...so long as its going to them and not the other guy.

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